KARACHI: The State Bank of Pakistan (SBP) Monday clarified that the central bank had forecast of 7-9% inflation in FY22 which was being wrongly interpreted as the bank’s inflation target by some sections of media.
In some sections of the media, SBP’s average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and being compared to the inflation targets of other countries. This is incorrect, said a bank’s news release.
SBP’s inflation forecast represents the projections for the current fiscal year.
On the other hand, Pakistan’s inflation target is set by the government and is 5– 7 %. This target is to be achieved over the medium term. Monetary policy is anchored on achieving the government’s inflation target over the medium term, i.e. over the next 18-24 months.